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Commerzbank: Gold, Palladium ETF Holdings Decline

Kitco News

Exchange-traded-fund holdings of gold and palladium have fallen, says Commerzbank. Gold prices slid Tuesday as the Dow Jones Industrial Average gained nearly 5% from its low to its high. “The price slide was accompanied by high outflows from the gold ETFs. Holdings in the gold ETFs tracked by Bloomberg were reduced by 7.4 tonnes in all, while the SPDR Gold Trust in the U.S. even lost a good 12 tonnes,” Commerzbank says. Meanwhile, analysts point out that previously high-flying palladium, the strongest commodity in 2017, has now shed more than $140 from its mid-January high. “Palladium also saw significant outflows from its ETFs yesterday, meaning that outflows from palladium ETFs have totaled more than 100,000 ounces, or 8%, since the start of the year,” Commerzbank says.

By Allen Sykora of Kitco News; asykora@kitco.com

 

CPM Group's Christian: Bitcoin Not Seen As Alternative To Gold

Wednesday February 07, 2018 09:33

Jeffrey Christian, managing partner with the consultancy CPM Group, says many investors do not see bitcoin as a meaningful alternative to gold but for some time have been investing in stocks instead of the precious metal. “I don’t think most physical gold investors and gold stock investors see bitcoin as an alternative to gold and gold shares,” Christian says, sharing comments he made to The Northern Miner. “I know our clients, who tend to be more intellectually oriented and perhaps more longer-term oriented, see bitcoin as something they would day trade, but they wouldn’t take a position overnight because they see it as the ultimate fiat currency backed by nothing and no one, and the antithesis of gold. But I’d make a bigger point, too: I don’t think bitcoin is distracting many people from gold. What’s distracting people from gold is the stock market. If you look at the cryptocurrency market — bitcoin and the others — it’s less than $200 billion in open interest, value outstanding and it’s fewer than a million investors.”

By Allen Sykora of Kitco News; asykora@kitco.com

 

RBC's Gero: Gold Hurt By Interest Rates, Dollar, Stock Volatility

Wednesday February 07, 2018 09:33

Comex April gold has fallen to its lowest level in nearly a month. “Gold holders are negatively reacting to interest rates, the [stronger] dollar and global volatility in stocks, and so gold is not yet performing its safe-haven function to hedge for inflation,” says George Gero, managing director with RBC Wealth Management. He also cites a recent “rush to cash,” which often happens when equities swoon. Around 9:20 a.m. EST, April gold was down $5.50 to $1,324 an ounce and bottomed at $1,322.10, its weakest level since Jan. 11.

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